If you’re interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the ALPS OShares U.S. Quality Dividend ETF (OUSA), a passively managed exchange traded fund launched on July 14, 2015. <\/p>\n
The fund is sponsored by Alps. It has amassed assets over $725.78 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market. <\/p>\n
Why Large Cap Value <\/p>\n
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies. <\/p>\n
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets. <\/p>\n
Costs <\/p>\n
When considering an ETF’s total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal. <\/p>\n
Annual operating expenses for this ETF are 0.48%, putting it on par with most peer products in the space. <\/p>\n
It has a 12-month trailing dividend yield of 1.42%. <\/p>\n
Sector Exposure and Top Holdings <\/p>\n
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund’s holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis. <\/p>\n
This ETF has heaviest allocation to the Financials sector — about 28.7% of the portfolio. Information Technology and Healthcare round out the top three. <\/p>\n
Looking at individual holdings, Johnson & Johnson (JNJ) accounts for about 5.75% of total assets, followed by Alphabet Inc. (GOOGL) and Apple Inc. (AAPL). <\/p>\n
The top 10 holdings account for about 42.42% of total assets under management. <\/p>\n
Performance and Risk <\/p>\n
OUSA seeks to match the performance of the FTSE US Qual \/ Vol \/ Yield Factor 5% Capped Index before fees and expenses. The OShares U.S. Quality Dividend Index measures the performance of publicly-listed large-capitalization and mid-capitalization dividend-paying issuers in the United States. <\/p>\n
The ETF return is roughly 1.24% so far this year and it’s up approximately 11.21% in the last one year (as of 06\/18\/2026). In the past 52-week period, it has traded between $52.31 and $59.77. <\/p>\n
The ETF has a beta of 0.75 and standard deviation of 11.32% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk. <\/p>\n
Alternatives <\/p>\n
ALPS OShares U.S. Quality Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, OUSA is a sufficient option for those seeking exposure to the Style Box – Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space. <\/p>\n
The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value Index Fund ETF Shares (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $94.75 billion in assets, Vanguard Value Index Fund ETF Shares has $182.37 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%. <\/p>\n
Bottom-Line <\/p>\n
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors. <\/p>\n
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. <\/p>\n
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report<\/a> <\/p>\n ALPS OShares U.S. Quality Dividend ETF (OUSA): ETF Research Reports<\/a> <\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a> <\/p>\n